Latest News

28 Jul 15

FOS Receives 4,000 PPI Complaints per week

It has emerged this week that the Financial Ombudsman Service (FOS) received 4,000 payment protection insurance (PPI) complaints every week during April to June of 2015. The figure has emerged as part of a statement released by FOS on Tuesday 21st July, in which they published a snapshot of complaint figures for the first quarter of the 2015-2016 financial year. Chief Ombudsman, Caroline Wayman, sent out an email statement, announcing “Complaints about PPI are still the main driver of financial disputes.” She also stated:

“Although numbers are slowly declining, it will be years before we can truly say this mis-selling scandal is over.”

Furthermore, as part of the release of figures on 21st July, it has come to light that 55% of new cases dealt with by the FOS from April to June were concerning mis-sold PPI, which is an overwhelming proportion. Consumers referred 89,935 new cases to the FOS during the period, of which 49,377 were to do with the PPI mis-selling scandal. Overall, the FOS received 62,105 PPI enquiries during the quarter, illustrating that the PPI scandal is not a problem that will be fixed either easily or quickly.

UK banks have paid out roughly £19.7 billion in PPI compensation (including Administration costs) thus far, and have allocated a further £6.3 billion for additional redress and Administration costs. The lenders are still providing compensation almost two decades after the insurance for loan repayments was first sold. The fine handed out to Lloyds Banking Group plc only last month to the sum of £117 million (the largest retail banking penalty imposed by the Financial Conduct Authority) for unfair handling of PPI complaints between March 2012 and May 2013, highlights that this remains a very current financial issue.

Sources:

Insurance Age 21.07.15   http://www.insuranceage.co.uk/insurance-age/news/2418532/fos-receives-4-000-ppi-complaints-a-week
(Please note: this requires a login to view the article)

Bloomberg Business “U.K. Ombudsman Says 55% of Complaints Over Loan Insurance ” 21.07.15
http://www.bloomberg.com/news/articles/2015-07-21/u-k-ombudsman-says-55-of-complaints-over-loan-insurance-sales

Post “Ombudsman reports no let-up in PPI complaints” 21.07.15
http://www.postonline.co.uk/post/news/2418543/ombudsman-reports-no-let-up-in-ppi-complaints

Insurance Times – “PPI complaints still running at 4000 a week” –  21.07.15
http://www.insurancetimes.co.uk/ppi-complaints-still-running-at-4000-a-week/1414799.article
(Please note: this requires a login to view the article)

FOS “Chart Issue”  21.07.15
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/126/chart_issue126.pdf

FOS “Ombudsman News- for better or worse” 21.07.15
http://financial-ombudsman.org.uk/publications/ombudsman-news/126/issue_126.pdf

The Claims Guys use cookies to improve your experience. If you're ok with this please click the 'Accept' button...